PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1515509
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1515509
Solar Photovoltaic Market size was valued at USD 155,567.34 Million in 2023, expanding at a CAGR of 9.5% from 2024 to 2032.
Solar photovoltaic (PV) technology involves the direct conversion of sunlight into electricity using semiconductor materials within solar cells. The primary objective of solar PV is to harness renewable solar energy to generate electricity in a sustainable and environmentally friendly manner. By utilizing solar PV systems, the goal is to reduce dependence on fossil fuels, mitigate greenhouse gas emissions, and contribute to global efforts in combating climate change.
Solar Photovoltaic Market- Market Dynamics
Government Incentives and Policies Fuel Solar Photovoltaic Market Growth
Government incentives and policies play a crucial role in driving the growth of the solar photovoltaic (PV) market worldwide. Financial incentives such as subsidies, tax credits, and rebates significantly reduce the initial costs of installing solar PV systems, making them more accessible to a broader range of consumers and businesses. Feed-in tariffs (FiTs) ensure that solar PV system owners are compensated for the electricity generated, providing a stable income stream and encouraging investment in solar energy projects. Regulatory policies that mandate renewable energy targets and enforce building codes requiring solar installations also stimulate market demand. Together, these measures create a favorable environment for the expansion of the solar PV market, contributing to its rapid growth and adoption globally.
Recently, the Delhi government has unveiled the plan to deploy 4,500 MW of solar capacity by 2027 under its new Solar Energy Policy 2023. This policy includes 750 MW from rooftop solar installations within the state and approximately 3,750 MW from utility-scale solar projects outside Delhi.
Solar Photovoltaic Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 9.5% over the forecast period (2024-2032)
Based on Type segmentation, Mono-Si was predicted to show maximum market share in the year 2023
Based on Grid Type segmentation, On-grid was the leading type in 2023
Based on Installation segmentation, Ground Mounted was the leading type in 2023
Based on System segmentation, Low Concentrated PV (LCPV)was the leading type in 2023
Based on Application segmentation, Utilities was the leading type in 2023
Based on region, Asia Pacific was the leading revenue generator in 2023
The Global Solar Photovoltaic Market is segmented based on Type, Grid Type, Installation, System, Application, and Region.
The market is divided into four categories based on Type: Mono-Si, Thin Film, Multi-Si, and Others. Monocrystalline silicon (Mono-Si) technology is the dominant force in the solar photovoltaic (PV) market due to its superior efficiency, space efficiency, and reliability. Mono-Si solar cells have the highest efficiency rates among solar PV technologies, allowing them to generate more electricity per square meter of solar panel area. This efficiency advantage makes Mono-Si panels particularly attractive for applications where maximizing energy output from limited space is crucial. Additionally, Mono-Si panels are known for their durability and longevity, ensuring reliable performance over many years.
The market is divided into two categories based on Grid Type: On-grid and off-grid. On-grid systems dominate due to their widespread connectivity to existing electricity grids. These systems allow seamless integration of solar-generated electricity into the grid, enabling users to benefit from net metering policies and sell excess power back to utility companies. On-grid systems are favored for their cost-effectiveness, requiring less investment in energy storage solutions compared to off-grid setups. This makes them more accessible and practical for urban and suburban areas where grid infrastructure is well-established.
Solar Photovoltaic Market- Geographical Insights
Geographically, Asia Pacific leads the global market in solar photovoltaic (PV) due to several strategic advantages and robust growth factors. The region's dominance is underpinned by its proactive stance towards renewable energy adoption, driven by supportive government policies, incentives, and ambitious renewable energy targets set by countries like China, India, Japan, and Australia. These policies have spurred substantial investments in solar PV infrastructure, creating a conducive environment for both utility-scale and distributed solar PV projects. For instance, India's goal is to achieve 500 GW of installed renewable energy capacity by 2030, with 50 solar parks totaling 37.49 GW in approved capacity. Currently, India has reached a solar capacity of 84.27 GW.
The solar photovoltaic (PV) industry thrives on a competitive landscape brimming with innovation. Here, established giants like Longi Solar and JinkoSolar battle for market share with regional powerhouses like SunPower and Vikram Solar. These titans leverage economies of scale to offer competitive pricing. However, the scene isn't static. Nimble startups and smaller players constantly push boundaries with novel technologies like perovskite solar cells, vying for a niche in the market or specializing in efficiency improvements.
The fight for dominance hinges on several factors. Cost competitiveness reigns supreme, with companies striving to reduce cost per watt through efficient manufacturing and technological advancements. Recently, The Department of Energy has allocated over $70 million for research and development to foster new technologies for the solar supply chain. Initiatives like these, aim to facilitate the entry of new players into the solar manufacturing market, enabling them to develop and scale their technologies with increased access to capital.
In June 2024, Waaree Renewable Technologies received a Letter of Award (LOA) from a metal recycling and specialty chemicals company to undertake a turnkey floating solar power project with a capacity of 1.090 MWp DC.
In June 2024, three solar photovoltaic (PV) projects with a total capacity of 5.5GW were awarded power purchase agreements (PPAs) by The Saudi Power Procurement Company (SPPC) in Saudi Arabia, according to Zawya.
In May 2024, China added 19 GW of new solar PV capacity, marking a 48% increase compared to the previous year, as reported by the National Energy Administration (NEA). By the end of May, China's total installed power generation capacity reached about 3,040 GW, reflecting a 14.1% year-on-year growth.
GLOBAL SOLAR PHOTOVOLTAIC MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
First Solar, Inc.
Canadian Solar Inc.
Trina Solar
Jinko Solar
JA Solar Holdings Co., Ltd.
Sharp Corporation
Tata Power Solar Systems Ltd.
Wuxi Suntech Power Co., Ltd.
SunPower Corporation
Abengoa SE
Acciona S.A.
ReneSola Ltd